People often ask me: "Bro, how should I allocate my positions? How do I manage risk?"

To be honest, if you don't understand these two questions, trading cryptocurrencies is like walking with a bomb — whether it explodes or not depends on luck.

First, let's talk about how to allocate positions.

The core of this matter is simple: don't put all your chips on one cryptocurrency. When I first started, I saw too many people go all-in on some "hundredfold coin," only to find themselves with no capital left to recover when it crashed through the floor.

For beginners, the total position should absolutely not exceed 30%. Keep the remaining 70% in your pocket for now, wait until you understand the market, and confirm that the trend is stable before gradually increasing your investment. This way, even if the market suddenly changes, you can absorb the losses and won't end up back where you started overnight.

Once you get the hang of things and your account balance is healthy, you can raise your position to 50% or even higher, but there are two red lines you must never cross: never go fully invested, and never heavily invest in a single cryptocurrency. Before each trade, ask yourself: "If I lose on this trade, can I accept it?" If the answer is "no," then this trade is a definite no-go.

Now, let's talk about how to control risk.

In simple terms, it's about installing a "safety valve" on your account — stop-loss. Before each operation, set your stop-loss line, for example, if you lose 3%, cut it off; when it reaches that point, don't hesitate, close it immediately.

I learned the hard way about not using stop-loss: I had a trade drop by 10% and still held onto hope, only to see it drop even deeper, and eventually, my entire account shrank by half. Later I understood that stop-loss isn't about giving up, it's about preserving your vitality. If you control the loss of a single trade, your mindset will be stable, and you won't lose your rhythm due to a single mistake.

The loss limit for each trade must be set in advance; once you hit it, exit, don't wait for "just one more look." With a reasonable position allocation and effective stop-loss execution, even if you encounter a sharp drop or surge, you will be able to stand firm.

In fact, these two points are like the seatbelt and brake when driving — they may seem unimportant on a daily basis, but they can save your life at critical moments.

In cryptocurrency trading, greed and fear are both taboos. Before opening a position, think through every step: how much of your position to take, where to set the stop-loss, and at what point to take profit. Follow the rhythm, don't rush to double your investment; seek stability first, and only when you are stable can you have the confidence to turn the tide.

If you're feeling confused about your position allocation or constantly hesitating about stop-loss, feel free to reach out to me at @bit多多 . The pitfalls I've encountered and the methods I've tested may help you avoid taking many unnecessary detours.